When a new position opens at your company, what do you do? Do you start casting a net for new hires or do you look at who you already have? While some believe it’s always better to promote from within, others think hiring externally is the best route.
Before you decide, consider the following nine variables so you can get the right person for the job and maintain harmony and efficiency on your teams.
- Cost
It’s more cost effective to hire from within. For starters, you won’t have to spend the average $4,000 per new hire on recruiting or referrals. Plus, you’ll avoid spending the average annual $300,000 on training new employees. If that’s not enough to convince you, new employees make 18% to 20% more than promoted employees. A position that could cost $70,000 per year if you promoted from within could cost you $84,000 if you hire from outside your company. Take your time and think through all your options and find the one most cost-effective for your business’s needs.
- Fairness
Accept formal interview requests from both internal and external applicants. The final hiring decision will seem fairer when you consider everyone from a broad pool rather than cherry-picking someone without holding an interview. Even if you conduct interviews for formality’s sake, the process might help you keep morale high with your current employees. And if you do end up hiring externally, you can make small and inexpensive gestures to smooth things over with your existing team.
- Culture
Does your company tout the importance of growing employees from within and developing their careers? Or is everyone used to new faces every month? Determine the norm of your company’s culture before you decide to hire from within or outside of your company. Then, ask applicants to describe their ideal work culture so you can find someone who will thrive in your business’s environment.
- Talent
Do you have an internal employee who can tackle any task at hand? Or are you wondering if you should look outside your company for an individual with promising talent? Look to all corners of your office or the globe to find an ideal candidate who has the exact skills you need to keep your team and business successful.
- Perspective
Has your company gotten in a rut? Then it might be time to bring in fresh ideas. When you conduct interviews, ask questions about creativity to find the most innovative hire. An internal applicant’s time at your company may have given them new ideas about how to help your business surge. But an external candidate can bring a completely new perspective that you may have never considered before.
- Bandwidth
Experts say it takes about ninety days for new hire to assimilate to the culture and job. Do you have the time and resources to train someone completely new to your company? Expedite this process by either hiring internally or introducing a mentorship program. That way, your internal candidates will be ready to step up when the time comes, and new employees will have the resources they need to get up to speed.
- Career Goals
Just because you can picture an internal employee in a new position doesn’t mean they want to be there. Talk to your staff on a regular basis—monthly check-ins are ideal—to determine what they want for career progression. Take note and keep them on a stand-by list for new opportunities.
You can also use this same principle if you interview an external applicant. Ask them where they see themselves a few years down the road and how working for you will help them with their career.
- Business Goals
What’s your overall company goal? Do you want to expand twofold over the next twelve months? If so, bring on new people to accommodate that growth. Do you want to hone your current teams to make them more effective? An internal employee may have the expertise and leadership skills to fine-tune different areas of your business in a way you may not be able to. Think about your overarching business goals and determine if an external or internal hire can help you best attain them.
- Needs
Do you absolutely need this new position? Is it worth the time and effort of finding the right fit? You might be able to bypass internal and external hires entirely by going with a freelancer. Freelancers prove to be one of the most cost-effective means of getting work done, allowing you to prioritize your employees elsewhere.
Expanding your team is an exciting step. We hope these tips will help you make the best decision for your company and bring on new talent or develop employees so your enterprise can continue to thrive.